Gartner: $1 trillion in IT spending moving to cloud. How much is on waste?

Gartner recently reported that by 2020, the “cloud shift” will affect more than $1 trillion in IT spending.

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The 2016 Cloud Market

While Gartner’s $1 trillion number refers to the next 5 years, let’s take a step back and look just at the size of the market in 2016, where we can more easily predict spending habits.

Breaking down IaaS Spending

Within the $22.4 billion spent on IaaS, about 2/3 of spending is on compute resources (rather than database or storage). From a recent survey we held — bolstered by our daily conversations with cloud users — we learned that about half of these compute resources are used for non-production purposes: that is, development, staging, testing, QA, and other behind-the-scenes work. The majority of servers used for these functions do not need to run 24 hours a day, 7 days a week. In fact, they’re generally only needed for a 40-hour workweek at most (even this assumes maximum efficiency with developers accessing these servers during their entire workdays).

All You Need to Do is Turn Out the Lights

A huge portion of IT spending could be eliminated simply by “turning out the lights” — that is, by stopping hourly servers when they are not needed, so you only pay for the hours you’re actually using. Luckily, this does not have to be a manual process. You can automatically schedule off times for your servers, to ensure they’re always off when you don’t need them (and to save you time!)

Written by

CEO of ParkMyCloud

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